Broadband Grant Tax Treatment Act

This bill would change federal tax rules so certain broadband grants are not counted as taxable income. It also blocks “double dipping”: if you use a grant to pay for a cost, you can’t also claim a tax deduction or credit for that same cost, and you must lower the value you report for any property bought with the grant money.

The rule covers grants from major broadband programs, including BEAD, Digital Equity (capacity and competitive), Middle Mile, certain USDA rural broadband grants, some state, territorial, Tribal, or local grants funded by federal relief dollars, and a 2021 broadband program. The government would issue rules to carry this out.

• Who is affected: People and organizations that receive the listed broadband grants.
• What changes: These grants are excluded from taxable income; no extra tax breaks are allowed for the same expenses; property bought with grant funds must have its reported value reduced.